Versatile Amarillo Property For
For Sale
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512 NE 2nd Ave, Amarillo, TX 79107
Commercial space with updated offices, multiple amenities, and fenced yard.
Property Size15,110 SF
Price / SF$65.52
Days on Market390
Property Features for 512 NE 2nd Ave
General Information
Standard status
Active
Size
15,110 SF
Property subtype
Industrial
Investment Type
Owner/User
Building Details
Buildings
2
Stories
2
Listing Agency:
FIMC Commercial Realty
(806) 358-7151
Listed By:
Kirk Chudej · License #TX 604402
Source:
Crexi
Added: Jul 30, 2025
Changed: Aug 15
Last Checked: Aug 22 at 6:04PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of FIMC Commercial Realty
Investment Insights
Based on property information with market context.
Located in Amarillo, Texas, the property at 512 2nd Ave is offered for sale. The property features 5 dock high doors, a fully fenced yard, multiple updated offices, multiple restrooms, 2 kitchens, and a large conference area. The property is located in an Opportunity Zone, a Business Improvement Grant area, and a City TIRZ. The property offers potential for use as both commercial space and living quarters or additional offices. The property contains 15110 square feet.
Key Highlights
- Located in an Opportunity Zone, offering potential tax benefits for investors
- Versatile space suitable for commercial use, living quarters, or additional offices
- Features 5 dock high doors and a fully fenced yard, ideal for businesses requiring loading/unloading and secure storage
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$90,909
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
9.18%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,818,180
$1.8M
Cap Rate 7%
$1,298,700
$1.3M
Cap Rate 9%
$1,010,100
$1.0M
Market Conditions
NOI Build-Up for 15,110 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$136.0K $9.00/SF
− Vacancy
−$6.1K −$0.41/SF
EGI
$129.9K $8.59/SF
− OpEx
−$39.0K −$2.58/SF
NOI
$90.9K $6.02/SF
Area
Amarillo, TX
Vacancy
4.50%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,818,180
Cap Rate 7%
$1,298,700
Cap Rate 9%
$1,010,100
Alternative Uses
Best Use
Flex RnD
$1.55M
$1.36M – $1.81M
NOI $108,429 @ 7.0% cap · market cap 10.95%
Second Best
Industrial
$1.30M
$1.14M – $1.52M
NOI $90,909 @ 7.0% cap · market cap 9.18%
Theoretical Best
Office A
$3.37M
$2.95M – $3.94M
NOI $236,151 @ 7.0% cap · market cap 23.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,410
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79107, TX
37,480
Population
12,346
Households
3
Avg Household Size
34
Median Age
6%
College-Educated
61%
High-School Grad
19.6 sq mi
ZIP Area
1,912
Density / Sq Mi
$39,474
Median Household Income
$28,084
Median Earnings
$1,016
Median Rent
$88,400
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial space with updated offices, multiple amenities, and fenced yard.
Where is this flex space located?
The property is located at 512 NE 2nd Ave Amarillo, TX.
What is the asking price?
The asking price for this property is $990,000.
What are key features of this property?
This property features: Located in an Opportunity Zone, offering potential tax benefits for investors; Versatile space suitable for commercial use, living quarters, or additional offices; Features **5 dock high doors and a fully fenced yard**, ideal for businesses requiring loading/unloading and secure storage
